European Commission Finds Fewer Pay-for-Delay Deals

Pay-for-delay deals between branded and generic drugmakers in the European Union continued to decline in 2016, according to the latest update from the European Commission.

In 2016, only 11 percent of the deals limited generic market entry and involved payments from the originator to the generic manufacturer.

Pay-for-delay deals “have stabilized at a low level,” according to the report, which notes that from 2004 to 2008, such deals represented 22 percent of all settlements.

Overall, nearly 90 percent of the settlements in 2016 fell into categories that do not require competition law scrutiny, the Commission said. Of the 11 pay-for-delay settlements in 2016, six provided for early entry without a license or distribution agreement, while another four combined early entry and generic licensing. One combined early entry with a payout to the generic maker to offset legal costs and one only included a license.